1. Funding Target Formula 32.50% Total VMT (on and off State Hwy System) 22.19% Population 16.88% Lane miles (on System) 14.06% VMT (trucks only) 6.88% Percent population under federal poverty level 6.56% Fatal & incapacitating crashes 0.93% Centerline miles (on System) Metropolitan Area (TMA) Category 2 Projects

2. Funding Target Formula 22% Total VMT (on and off State Hwy System) 26% Population 11% Lane miles (on System) 6% Centerline miles (on System) 15% VMT (trucks only) 9% Percent population under federal poverty level 11% Fatal & incapacitating crashes Urban Area (non-TMA) Category 3 Projects

3. Mobility Corridors – based on congestion Connectivity Corridors – 2-lane roadways requiring upgrade to 4-lane divided. Strategic Corridors – strategic corridor additions to the state highway network. An example would be the Ports-to-Plains. Statewide Connectivity Corridor Projects Selections based on engineering analysis of projects on three corridor types:

4. Challenges To Be Addressed

5. The Work Group will begin to address as many of the eight individual challenges as allowable in time permitted. Challenges to be addressed are as follows:

6. Challenges to be Addressed: 1.Determining the appropriate amount of right of way acquisition and consultant dollars that could be allocated by respective category to the MPOs;

7. Challenges to be Addressed: 2.Determine an allocation method;

8. Challenges to be Addressed: 3.Scheduling each area’s use of the total allocation

9. 4.Tracking the actual use of the dollars and balancing future scheduling with past obligations; Challenges to be Addressed:

10. 5.Educating Districts and MPOs on the use of its area’s allocation and what can be accomplished with the funds; Challenges to be Addressed:

11. 6.Temporarily continuing data maintenance to fulfill legislative reporting requirements (the Department is currently working on changes to enable tracking of total project costs that should be fully implemented by summer 2006);

12. 7.Investigating legal issues (contained in the Texas Administrative Code and the Texas Transportation Code); and Challenges to be Addressed:

13. 8.Developing recommendations to present to the Districts and MPO. Challenges to be Addressed: